ESTABLISHING A BUSINESS IN NETHERLAND

 

Why Dutch Company Formation Is A Good Opportunity For Your Business

19% - 25 corporate tax, one of the lowest tax rates in Europe

0% VAT for business between EU member states

Core member of the EU

High-tech infrastructure

The Netherlands ranks 3rd place in Forbes Global Business list

5th place in Global Competitiveness

Leading world banks (ING bank, ABN Amro, Rabobank)

Excellent international business climate

93% English-speaking natives

Netherlands is a logistical hub as a gateway to Europe

Qualified personnel (3rd in the world)

Possibility of business immigration

Remote formation of a business is possible

 

  

 

COMPANY FORMATION

1. Can I start a company in the Netherlands if I am not living there?

Yes, citizens of all countries are allowed to register companies in the Netherlands. We have procedures to register a company remotely.

2. Do I need to have a Netherlands business address?

Yes, the company must be registered in the Netherlands, it is also possible to set up a branch or representative office of a foreign company. A business registration address will generally cost around €60 - €150 per month, depending on the city and provider you choose.

3. Is there a minimum share capital in the Netherlands?

No, there is no longer a minimum share capital for the Dutch limited company. The official minimum is €1 share capital. But it is recommended to opt for a slightly higher share capital.

4. Do I need to have a local Dutch director?

A foreign entrepreneur, who starts a small- or medium-sized company in the Netherlands, in most cases will be the director of the new company himself. This is also the case for foreign entrepreneurs that do not live in the Netherlands. By Dutch law, it is fully allowed for a foreigner to be the owner and director of a company.

Lately, substance requirements are becoming more important. For example, for requesting a local VAT number or local bank account.

For the corporate income tax, the substance requirements may play a role. Especially if you have any specific tax treaties that are very important for your business, you should consider the substance requirements with your local tax advisors. In this case, a local director or staff can play a role for your tax status.

Substance is what the tax office uses to determine the 'connection' of the company to The Netherlands. To determine this, they consider aspects such as: Where are the companies directors located, or where are the companies' operations taking place? Where is the companies' staff located and what type of company office do you have in The Netherlands?

5. What is the cost of incorporation of a BV company in The Netherlands?

All-in price of €1499 €. This includes the notary, legalisation and Chamber of Commerce fees. All our services are deductible expenses for the new company you will be setting up in The Netherlands.

6. What company types are there in The Netherlands?

The Dutch BV (limited company) is the most chosen type for a Netherlands company registration by foreign investors. The Dutch limited company can be registered with a minimum share capital of 1 EUR, according to corporate law. A Dutch BV is deemed tax resident by law in the Netherlands.

 

  

 

PROCESS

1. How long will the incorporation take?

Generally it takes around 5 working days after we have received all your documents until the company is formed. The procedure can take longer in busier periods.

2. Can I be the shareholder and director (as a non resident)

Yes, the Dutch law requires 1 director and 1 shareholder. The director and shareholder can be the same person. There is no requirement for being a resident in The Netherlands.

3. What do you need to start?

We ask for a intake form, your desired company name and activity, as well as your ID document and proof of address.

4. Can you give me a quick summary of the mandatory steps in the process of company formation that ICS will perform for me?

When you send us the required documents, we will check all identification documents according to Dutch regulations and prepare all required forms.

We will present the concept formation deed and documents to our notary.

The notary will register the company in the Chamber of Commerce.

When the company is opened, we will send you the incorporation documents and final deeds.

If applicable, we will perform the additional services, such as: Requesting a VAT number, perform accounting services, secretarial services, tax filings or other requirements.

 

  

 

GENERAL QUESTIONS

1. Is it easy to obtain a business visa in The Netherlands?

It is very different case by case. We work closely together with an immigration lawyer. An intake consultation is possible from €190.

2. Do I need a business license in The Netherlands?

A business license is not needed for general business activities in the Netherland. Energy, Healthcare and Financial sector have business licenses.

3. Why make a company in The Netherlands?

The Netherlands scores extremely high on all international business rankings, most of the country speak English and The Netherlands has one of the highest educated workforces in the world.

The Netherlands also has an excellent network of double tax treaties and is considered one of the most reputable jurisdictions in the world.

4. Do I need to perform trademark registration?

The Netherlands Chamber of Commerce protects your trade name in the trade register (Within The Netherlands). So not many companies in The Netherlands opt for a trademark registration in The Netherlands.

If you need a trademark because your company relies on products or a strong brand name, you can register a trademark in The Netherlands and Benelux, Europe or Worldwide.

 

  

 

TAX

1. What is the corporate tax rate in The Netherlands?

The corporate tax rate is 19% corporate tax for any profit up to €200,000. And 25.8% for profit above €200,000. For more information, see our corporate tax article.

2. How does the Dutch VAT system work?

All companies with VAT activities need to request a Dutch VAT number.

The company is required to levy VAT on certain services and goods sold within The Netherlands. The company collects and holds the VAT, and will pay it to the tax office. All VAT paid by a company is refunded to the company. All VAT received is paid to the tax office.

VAT is not a cost for Dutch businesses.